NEWS RELEASE: DEAL'S DONE!
Attention Business Editors:
TNK RESOURCES INC. ANNOUNCES JOINT VENTURE
WITH DE BEERS
Diamond giant takes equity stake in junior mining company
TORONTO, Jan. 23 /CNW/ - Attached is a news release
announcing the
details of a joint venture agreement between Toronto-based TNK
Resources Inc.,
a Canadian junior mining exploration company, and De Beers, the
world's
largest producer of diamonds. Highlights include:
- De Beers will take an equity position in TNK, purchasing
800,000
shares and options for a second block of 800,000 shares.
- Last year, TNK made a significant diamond find at its Gope
Prospect
property in Africa. Forming a partnership with the largest player
in
the diamond business secures the funding and expertise to bring
the
project forward to a mining operation.
- This week, De Beers opened an office in Vancouver to seek
joint
ventures with Canadian junior mining companies. De Beers chose
TNK
for its first deal.
- TNK's discovery is located in the heart of the world's most
diamondiferous region.
- This is an enormous success for a Canadian junior mining
company
and TNK founder and CEO, Elizabeth Kirkwood. The
48-year-old,
self-taught executive is one of the few females in the world
running a
mining company.
TNK Resources Inc. is a junior Canadian mining company
engaged in mineral
exploration around the world. The company's efforts are focused
on diamond
exploration in Botswana, the world's largest producer of
diamonds. The
company's common shares are traded on the Canadian Dealer
Network under the
symbol TNKR and on the NASD Bulletin Board under the symbol
TNKRF.
Elizabeth Kirkwood, TNK founder, President and CEO is
available for
interviews. Please call (416) 504-8464 to book an interview, or
for further
information about TNK and its operations.
/For further information: contact: David Wills or Paula Kaihla;
Media
Profile, (416) 504-8464/
TNK RESOURCES INC. announces joint venture and private
placement agreements with DE BEERS
to advance TNK's Gope Prospect, Botswana, Africa
TORONTO, January 23, 1998... TNK Resources Inc.
(CDN-TNKR/NASD Bulletin
Board-TNKRF) today announces that it has entered into three
joint venture
agreements with De Beers Prospecting Botswana (Proprietary)
Limited (''De
Beers'') under which De Beers has the right to earn varying
interests in TNK's
Gope Prospect located in central Botswana. TNK has also
entered into a
subscription agreement with De Beers' wholly owned Canadian
subsidiary,
Monopros Limited, to purchase, by private placement, 800,000
Units of TNK,
each unit consisting of a common share and a common share
purchase warrant.
TNK's Gope Prospect consists of approximately one million
acres in the
centre of Africa's Kaapvaal Craton, the most productive
diamondiferous area on
earth. Since 1993 TNK has had a 100% exclusive licence to
explore the prospect
and over the past 12 months has made significant progress with
the discovery
of 4 diamondiferous kimberlite pipes.
According to Elizabeth Kirkwood, TNK's President and CEO,
''TNK has now
achieved its two major corporate objectives: first, to make a
diamond
discovery on the Gope Propsect, and second, to joint venture the
project to
the world's leading diamond producer. This ensures that, if
warranted, the
funding and expertise will be in place to bring the project to a
mining
operation.''
TNK will continue as the operator of the exploration programs
outside the
discovery licence, a demonstration of De Beers confidence in
TNK and its
exploration expertise.
The Gope Prospect has been divided by the joint venture into
three areas,
Area 1 being the licence covering the four diamondiferous
kimberlite pipes
discovered by TNK, Area 2 being the licences in the western
portion of the
prospect, and Area 3 being the licences in the eastern portion of
the
prospect, surrounding the Gope 25/136 pipe cluster operated by
De Beers in
joint venture with Falconbridge.
The Area 1 joint venture agreement provides that De Beers will
be the
operator and earn up to a 60% interest in the licence by financing
100% of the
costs to conduct an exploration and development program on the
licence. This
includes a bulk sampling program, completing a feasibility study
and, if
warranted, funding the development and construction of a
commercial mine.
The Area 2 and 3 joint venture agreements provide that TNK will
be the
operator of the joint ventures and will carry out prospecting and
exploring
for new kimberlite pipes (Stage 1 Exploration) within Areas 2
and 3 during
1998. In the event that additional discoveries are made by TNK,
De Beers has
the option to proceed to Stage 2, being preliminary evaluation,
consisting of
sampling, surveys, delineation drilling and mini-bulk sampling. If
De Beers
elects to proceed to Stage 2, it will thereupon become the
operator and will
earn up to a 60% interest in the licences by financing 100% of the
costs to
conduct an exploration and development program on the licence.
This includes a
bulk sampling program, completing a feasibility study and, if
warranted,
funding the development and construction of a commercial mine.
The subscription agreement provides that Monopros Limited will
subscribe
for 800,000 Units of TNK, at the price of $1.00 per Unit, each
Unit consisting
of one common share and one common share purchase warrant.
Each warrant shall
be non-transferable and shall be exercisable to purchase one
additional common
share of TNK at the price of $1.50 per share.
Botswana, Africa
Botswana is located in southern Africa, was formerly a British
protectorate and has been an independent, stable, multi-party
democracy since
1966. The World Bank considers Botswana to be one of the
world's best managed
countries and the pula has been described by London's Economist
newspaper as
the Swiss Franc of Africa.
Botswana is the largest diamond producer by dollar value of any
nation in
the world. Almost 50% of the country's GDP is derived from
mining primarily
for diamonds. Industry reports indicate Botswana sells
16,800,000 carats
annually, representing one-quarter of world sales, from only three
mines, all
operated by De Beers (Jwaneng, Orapa and Lethlekane). Other
countries rank in
at South Africa with 15%, Angola with 10% and Zaire (Congo)
and Namibia with
6% each.
No. of Shares issued: 37,218,008
-30-
For further information: contact: Media: David Wills (416)
504-8464; Investor: Canada: 1(800)663-9214 US:
1(800)444-9214; TNK: 1(888)603-1479 |
